- It has been a positive day to start the new month with front month soybeans (Mar ’14) flirting with the the $13.00/bu level, although not hitting the level (at the time of writing that is). Mar ’14 corn has also tested resistance at $4.39/bu, again not breaching the level as this is written. Equity markets looked weaker as fears grew over some economies (think Argentina and Turkey), which may stall the progress made in developed countries (think UK and US). The slowdown of growth in China, which has been in evidence for some months now, does not add confidence either. As money exits equities we always look to see if it is heading into commodities, but at present there is little, if any, evidence of this happening.
- As prices rallied producer selling has been in clear evidence, particularly corn and soybeans, which is limiting or even capping gains. Some consumers are adding to purchases, particularly nearby, on fears of further advances in the short term.
- In S America, the weather forecast in south and central Brazil over the next couple of weeks is wetter, Argentina is forecast to receive soaking rains. Generally speaking the conditions do not look as if they will adversely affect output where a record Brazilian soybean crop is expected, It is possible that the crop may be 90 million mt rather than 91 million mt, either way it is big!